Logistics and remittance company LBC Express reported an 18% increase in net income for the first nine months of 2017 to P733.516 million from P620.547 million in the same period last year.
In a regulatory disclosure, LBC Express Holdings, Inc. said service revenues increased 16% to P7.398 billion for the nine-month period, from P6.360 billion in the same period last year.
The positive performance, the company said, was primarily due to higher logistics revenues, attributable to the growth in both retail and corporate sales by 18% and 26%, respectively.
Revenues from the logistics segment grew 21% to P6.597 billion from P5.471 billion, in line with growth in volume of air cargo, sea cargo, and courier services rendered.
The growth in volume of services provided was mainly due to the horizontal expansion of the company, as evidenced by the net addition of 70 branches in the Philippines. LBC said this growth also resulted in an increment in its volume from cargo forwarding services and new clients acquired during the period.
For the third quarter of 2017 alone, net income surged 40.7% to P290.814 million from P206.677 million in the same quarter last year. Revenues during the quarter under review rose 12% to P2.489 billion from P2.225 billion in 2016, the increment again primarily due to the increase in logistics revenues as both retail and corporate sales rose.
The company earlier said it aims to boost its net income in 2017 to P985 million from P920 million recorded last year. LBC Express was already hitting its targets in the first semester of this year, said chief financial officer Enrique V. Rey, Jr.
Rey said there are “exciting things that we plan to do (in) the second part of the year that will further boost our income numbers.”
He added that LBC Express is currently in advanced discussion with prospective partners “and we’re looking to tap on additional logistics support to complete our supply chain segment.”
LBC Express currently operates in more than 20 countries, with a network of over 1,200 branches and a pool of 5,300 partner agents, and is steadily trying to expand its reach both domestically and globally.
In the Philippines, it operates three main hubs for sea cargo in Manila, Clark, and Cagayan de Oro, and runs 78 delivery hubs, managing a team of 1,410 delivery associates and over 6,000 employees across the country.
